The UK Consults On New Securitisation Rules

The Prudential Regulation Authority ("PRA") has published Consultation Paper 15/23 – Securitisation: General requirements ("CP 15/23") setting out its proposed rules to replace retained EU law requirements on:

1. Those provisions of the Financial Services and Markets Act 2000 (Securitisation) Regulations 2018 ("UK SecReg") for which the PRA has responsibility;
2. Risk Retention Technical Standards; and
3. Disclosure Technical Standards.

CP 15/23 also proposes: (a) adjustments to supervisory statement 10/18 on General requirements and capital framework; (b) how the PRA will use its power under the newly revised Financial Services and Markets Act 2000 (law since 29 June 2023) ("FSMA") to disapply or modify certain rules under new s 138BA; and (c) clarification that the rules also apply to one-off securitisations by PRA-authorised firms that are non-CRR and non-Solvency II. CP 15/23 also seeks views on the distinction between public and private securitisations